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#1516 |
MVP
Join Date: Mar 2004
Location: Helena, MT
Casino cash: $2848849
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Maximum loss of writing a put is 100 times the strike price, not unlimited. As it says in your link.
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Posts: 18,577
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#1517 | |
"You like to drink?"
Join Date: Jun 2006
Location: "I like to drink."
Casino cash: $1966869
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Quote:
Yes, you are right. I flipped the loss potential of puts with calls.
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Chiefs 2016 Opponents: Home: JAX, TEN, NO, TB, NYJ. Away: HOU, IND, ATL, CAR, PIT Chiefs 2017 Opponents: Home: BUF, MIA, PHI, WSH, AFC North. Away: NE, NYJ, NYG, DAL, AFC South |
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Posts: 43,623
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#1518 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $440477
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10 Stocks to benefit from Tax Reform from JP Morgan
https://www.investopedia.com/news/jp...m_medium=email |
Posts: 40,721
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#1519 | |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1481110
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Quote:
I also after the last purchase of the stock bought 10 out of the money puts with a $18.00 strike for June 2018 cost of $1.22 each for a total of $1,246 w commission. The stock has gone down since I purchased losing money in the short term and the puts have gone up slightly cutting my total loss on GE. I would need to sell the puts to recoup some of the losses in the stock. Right now all profits and losses are on paper. The puts are independent of the stock. Next time we meet I'll give you an in depth lesson BEFORE we drink.... ![]()
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"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ ![]() "The men who drafted Patrick Mahomes" ![]() |
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Posts: 51,585
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#1520 | |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1481110
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Quote:
If you "write" a single PUT, it means you are giving someone the right to PUT the stock to you at a specified price before a specific time. These are called NAKED PUTS. So if someone wrote a single put contract, which equals 100 shares of the underlying stock, for let's say $1.72 for the put contract on US Steel with a strike price of $30 and the expiration of April 20, 2018 you would collect $172 minus a small commission. So now if the stock plummets and goes down to $25, someone who owns the put option you sold can sell the stock to you at $30 and you must pay $3,000 for a stock now only worth $2,500. You have an immediate loss of $500 - your put money of $172. The most you could lose would be if US Steel went to $0 and you got forced to pay $3,000 for stock that is now zero and you would be out the $3,000 - $172 premium you collected when you wrote the option. Remember one thing, the higher the stock price when writing a naked put the greater the dollar loss if it goes against you. Some hedge funds and traders who want to buy a stock at a cheaper price if it is too high now, write a large amount of naked puts as a way to own a lot of stock on a decline while collecting the premium. If it doesn't go down, they still make money on the premium they collected. They will usually buy the puts underneath the ones they wrote so if the stock drops too much, they have some protection when there is a huge drop. This is called a STRADDLE
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"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ ![]() "The men who drafted Patrick Mahomes" ![]() |
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Posts: 51,585
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#1521 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $440477
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US Steel Raised to Buy From Neutral by Longbow Research
I actually bought moar at 32. The tax plan passing should give this a boost Sitting at 34.46 right now These Steel/ Metals/Mining stocks are doing well since the middle of November. opportunity here ?? NUE 2.43% Dividend STLD 1.5% dividend TX 3.21% Dividend GGB 0.69% Dividend SMSMY 2.48% Dividend AKS 0Dividend Last edited by Hog's Gone Fishin; 12-20-2017 at 01:30 PM.. |
Posts: 40,721
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#1522 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $440477
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MU Micron Technology has a target price of $57-$85 .Currently at $45.
Good chance of 50% gain over next 12 months. Good fundamentals with the company but they don't pay a dividend. |
Posts: 40,721
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#1523 |
MVP
Join Date: Aug 2000
Location: Lee's Summit
Casino cash: $4821637
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Posts: 8,287
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#1524 | |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1481110
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Quote:
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"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ ![]() "The men who drafted Patrick Mahomes" ![]() |
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Posts: 51,585
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#1525 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $440477
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I sent you PM but yeah I think tomorrow I'll see. They interviewed the CEO today on CNBC. I think its a solid company headed in the right direction. Good chart for the last year and they have great Fundamentals. They're on top of AI and IOT which is getting huge.
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Posts: 40,721
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#1526 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $440477
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Posts: 40,721
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#1527 | |
TACO SALAD
Join Date: Apr 2008
Location: yes
Casino cash: $508468
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Quote:
That Long Island Iced Tea company that renamed to Long Blockchain and shot up 600% lol! |
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Posts: 6,054
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#1528 |
He's Mahomie!
Join Date: Aug 2001
Location: Jax, FL
Casino cash: $10023443
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For some reason I'm thinking we're at the top for stocks. Good time to put in stop losses.
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99.9% |
Posts: 17,387
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#1529 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
Casino cash: $2028491
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Quote:
I've been pondering pulling a big chunk out to buy some real estate, and will be looking at a property in the next week or so. I worry that I'm going to miss a tax bill runup if I do, but I also feel like the stock market will at some point cool off. It's been, what, a seven-year run?
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Active fan of the greatest team in NFL history. |
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Posts: 142,327
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#1530 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $10029808
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Quote:
Is now the time to mention that the tax plan will negatively affect housing prices, most likely, especially in higher tax states, due to the cap on mortgage deduction and SALT, including real property taxes? May not affect you depending on your property location and/or what type of property this is. If the property is for renting, then you should be safe. Not like 1031 like-kind exchanges are being negatively affected or anything. But if it was a buy, fix-it-up and flip situation, that market might cool off at the higher end of the price range.
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"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington |
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Posts: 43,125
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